IMPACT OF FREE CASH FLOW & LIQUIDITY RATIO ON PROFITABILITY OF THE POWER GENERATION FIRMS IN KARACHI

Abstract

Purpose: The main objective for this research is the find the impact of free cash flow and liquidity ratio on profitability of the power generation firms in Karachi. This purpose is to measure either the impact is positive or negative Research Methodology The nature of this research is secondary and based on audited annual reports. To evaluate the result, Panel least square model is use. It contain panel data therefore it is evaluated by Eviews software. Finding: In this research, Panel least square method is applied to analyze the impact of Free Cash flow and liquidity ratio on profitability of power generation firms in Karachi. Different hypothesis are created according to each variable of independent and dependent. The result have been discussed according to 5 % significance level. Practical Implimentation: This study reveals that Quick ratio have a positive impact on ROA while Free cash flow and current ratio does not have any impact on dependent variable use in this study and quick ratio does not have impact on ROE and NIM.